Comments on: National Brands Must Innovate To Win Back Store-Brand Shoppers

By: Why Capacity Management Matters to Business Executives « Boundaryless Marketing by Paul Barsch

Wed, 01 Jul 2009 14:30:29 +0000

[...] also can be found in micro-segments and categories such as increases in market share of private label brands vs. national brands on grocery store shelves, or Apple’s share of the smartphone market. Once our eyes are opened to [...]

By: Glenn

Glenn — Thu, 23 Apr 2009 20:22:35 +0000

According to the chart, 18% is the highest level of dollar share of store achieved by private label brands, which means that national brands hold onto 82% or more of the share.

Consumers who have become loyal to store brands will be encouraged to switch back when national brands offer a value that gives them cause to again pay more. That value may be tangible- healthy, packaging, etc- or it may intangible- branding, aspirational.

Although those working in the industry identify a dichotomy between store and national brands, consumers don’t necessary see products this way. Rather, the product they purchase and adopt is that which best satisfies its given promise, no matter what the label.

By: Top 5 Things to Expect From National Brands. « My private brand’s Blog

Wed, 22 Apr 2009 02:19:42 +0000

[...] National Brands Must Innovate To Win Back Store-Brand Shoppers Sales of store brands, or private label products, began to spike in 2007 just as we were seeing the first signs of an economic downturn. At first, these private label sales were driven by higher commodity prices, but volume growth began to catch up with dollar growth in mid-2008. As the economy continues to struggle, more and more consumers are replacing their branded products with private label equivalents. Store brands are up 10% to $84.4 billion in annual sales across categories reported by The Nielsen Company. Talking to Consumer Packaged Goods marketing professionals across the country, there is a consensus that these private label switchers won’t be coming back when the economy improves – at least not without some incentive. Winning back these shoppers will not be easy for branded manufacturers. Although many will be tempted to cut back on new product development, now is the time to innovate. [...]